In a bid to revive the real estate and construction, the Pakistan government is considering granting an exemption to non-filers on investments of up to Rs. 10 million without any restrictions.
The draft of a new law prepared by the Federal Board of Revenue (FBR) states that non-filers will be able to invest up to Rs. 10 million in real estate without having to justify their sources of income. This would include the purchase of new homes, plots or apartments.
Similarly, the proposed law would allow non-filers to sell houses valued at up to Rs. 10 million and declare properties worth the same amount. Additionally, say sources, inherited property and cattle of non-filers will not be considered black money and their sale can be used to purchase property worth up to Rs. 10 million.
According to sources within the FBR, the tax body aims to introduce the new law within a month. They have said the government would not grant any amnesty to the construction sector.
In recent months, prominent figures of Pakistan’s construction and real estate sectors have called on Prime Minister Shehbaz Sharif to introduce a package to revive the industry. Last year, the government unveiled a Prime Minister’s Construction Package promoting vertical expansion and making low-cost housing more accessible to the public. However, the package stressed there would be no tax amnesty, as the government wished to support the construction sector through sustainable incentives rather than tax breaks.